When it comes to retirement planning, you have lots of options. But all the funds, numbers and interest rates can be overwhelming at times. Should you call on the services of an investment professional, or invest on your own?
Dave always leans toward hiring a pro for anything important. Hiring the right professional to do an important job will save you time, money and stress. Investing on your own may save you a little money at first but can cost you in the long run.
Here are some situations and solutions to help you decide which option is best for you:
Most 401(k)s limit you to around a dozen choices, so this decision shouldn’t be too complex.
Solution: You may be able to make these choices on your own. However, if you want to be thorough, consider getting an investment professional’s opinion.
There are thousands of mutual funds available for your IRA, and there are different types of IRAs. If you don’t want to take the time to research them all, then you should avoid flying solo.
Solution: Get a pro to do the research, find the funds that fit your goals and explain how different types of IRAs will affect your retirement goals.
If you left a previous job and took part in your former company’s 401(k), you should move the leftover money into an IRA. You have thousands of options to choose from, which is overwhelming for most people.
Solution: Get an investing professional to help you roll over any 401(k)s from previous employers to an IRA. A pro will also help you choose the best funds.
Estate planning involves retirement planning, minimizing taxes, distributing money to loved ones, money management after death and much more. This can get complex.
Solution: Even rocket scientists use investing professionals to do their estate planning. You should do the same to save yourself many headaches.
If you think investing by yourself is the right choice, you’ll have no trouble finding do-it-yourself services. However, if your situation requires an investing pro's help, make sure you get someone who is reliable and trustworthy. Dave recommends that you talk with one of his Investing Endorsed Local Providers (ELP) who are certified professionals with the heart of a teacher. They’ll help you build wealth even during today’s economic slump.
Find local professionals that Dave recommends for: